Corporate ATM Cards?

Should you issue ATM cards to holders of corporate accounts? We have been asked this question on more than one occasion.

It's not a bad idea for good service-especially for the smaller corporations.

Depending on the type of card you issue, our ATM experts tell us you have two choices.

Apply for a new ISO number. This six digit BIN will control access on the card so that only deposits can be made-withdrawals are not possible. Good for getting cash into the machine immediately, reducing the responsibility of holding cash overnight or on weekends.

Or, in some cases, there is another account field that can be utilized to also designate that the card can be used only for deposits.

You will want to contact your account manager for an application for a new ISO number or information on the fields available to you.

Your other choice, of course-especially for private or individual corporations, is just to issue the card. One of the major uses of the card by a corporation is to transfer idle funds from savings to demand deposit accounts. Using an ATM card makes it more convenient for the customer to do this and still stay "legal" as far as the number of transfers allowed on the corporate interest bearing account.

Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 10, 11/91